Feb 25, 2018 Last Updated 9:39 AM, Feb 25, 2018

Latest Story

MALAWI PRESIDENT BITTER WITH BUSHIRI  FOR CREATING FAKE FB PAGE IN HIS NAME

MALAWI PRESIDENT BITTER WITH B…

State House has noted with serious concern that a Facebook account has been crea...

MACRA REBUFFS MCP OVER MBC'S 'NEVER AGAIN' PROGRAM

MACRA REBUFFS MCP OVER MBC'S …

Malawi Communications Regulatory Authority (Macra) has thrown away complaint by ...

DRAMA IN PARLIAMENT AS CRACKS IN MCP DEEPEN

DRAMA IN PARLIAMENT AS CRACKS …

It was all drama in Parliament as factions in the divided Malawi Congress Party ...

APM HAILED ON CONTINUED KWACHA STABILITY...As economy on recovery gear

Published in Business
Read 2144 times
Rate this item
(0 votes)

One of the country’s financial market analysts has hailed President Peter Mutharika on the continued stability of the local currency saying he even sees the kwacha trading below K700 to the United States dollar by July this year.

The analyst, Martin Nsamala, who is also Golden Forex Bureau Director, said prospects are strong that the kwacha will strengthen against the dollar following the good start to the tobacco selling season and tight monetary policy set by the Reserve Bank of Malawi.

On Friday, the kwacha was trading at around K729 to the dollar in authorized dealer banks while bureaus were selling the green buck at an average price of K755.

As at May 10, 2017, gross official reserves stood at $517.83 million or 2.74 months of imports.

As at the end of tobacco sales on Thursday, the country had realised a total of $33.4 million with 19,336,342 kilogrammes of the green gold sold an average price of $1.73 per kilogramme.

Nsamala said with the tobacco selling season yet to gather steam, chances are high that the local currency will gain considerable ground against the green buck.

“If prices continue to remain good at the auction floors, the country will realise more dollars from tobacco sales,” Nsamala said.

He added that the tight liquidity prevailing in the market at the moment could also help ease pressure on the dollar, thereby allowing the kwacha to appreciate.

In the short term, Nsamala observed that this is going to be very beneficial for the farmers if they plan well on the fertilizer and farm inputs.

“If the dollar is below K700 then the farm inputs will be cheaper and this will help farmers to further make profits as the crop prices have been low due to bumper harvests.

“We should all pray for good rains this year as well and then the economy will have fully recovered by 2018,” Nsamala said.One of the country’s financial market analysts says he sees the kwacha trading below K700 to the United States dollar by July this year.

The analyst, Martin Nsamala, who is also Golden Forex Bureau Director, said prospects are strong that the kwacha will strengthen against the dollar following the good start to the tobacco selling season and tight monetary policy set by the Reserve Bank of Malawi.

On Friday, the kwacha was trading at around K729 to the dollar in authorized dealer banks while bureaus were selling the green buck at an average price of K755.

As at May 10, 2017, gross official reserves stood at $517.83 million or 2.74 months of imports.

As at the end of tobacco sales on Thursday, the country had realised a total of $33.4 million with 19,336,342 kilogrammes of the green gold sold an average price of $1.73 per kilogramme.

Nsamala said with the tobacco selling season yet to gather steam, chances are high that the local currency will gain considerable ground against the green buck.

“If prices continue to remain good at the auction floors, the country will realise more dollars from tobacco sales,” Nsamala said.

He added that the tight liquidity prevailing in the market at the moment could also help ease pressure on the dollar, thereby allowing the kwacha to appreciate.

In the short term, Nsamala observed that this is going to be very beneficial for the farmers if they plan well on the fertilizer and farm inputs.

“If the dollar is below K700 then the farm inputs will be cheaper and this will help farmers to further make profits as the crop prices have been low due to bumper harvests.

“We should all pray for good rains this year as well and then the economy will have fully recovered by 2018,” Nsamala said.

Last modified on Wednesday, 17 May 2017 14:38

77 comments

  • Comment Link Alvaro Alvaro Thursday, 08 February 2018 03:02

    I relish, result in I discovered exactly what I used to be
    having a look for. You've ended my 4 day long hunt!

    God Bless you man. Have a great day. Bye

  • Comment Link Raleigh Raleigh Wednesday, 07 February 2018 23:15

    Thank you for some other informative site. The place else could I am getting that kind of information written in such
    a perfect way? I have a mission that I'm simply now operating on, and I have been at the look out for such information.

  • Comment Link Harriett Harriett Wednesday, 07 February 2018 18:22

    Do you mind if I quote a few of your articles as long as
    I provide credit and sources back to your website? My
    website is in the very same area of interest as yours and my visitors
    would really benefit from some of the information you provide here.
    Please let me know if this alright with you.
    Thank you!

Leave a comment

Make sure you enter the (*) required information where indicated.Basic HTML code is allowed.

Find Us on Facebook